Health insurance is a must. Apart from that what are the other insurances which a retiree should take up? Paying a lot of insurance premiums would be an added burden. Thus, it is important to choose only the important insurances to take up after the retirement.
It is better to have basic auto insurance, if you own a car. An insurance to cover the damages to the vehicle and to the person, would be enough. Having an insurance to protect your car from theft and property damage is your choice.
Home insurance or renters insurance
You need to save your house from problems and damages. Thus, depending upon the location, take up flood, wind or earthquake insurance. If you are a renter, it is better to take up renters insurance. This would help to cover the damage to the property and belongings. If needed, you can take an umbrella policy to cover you from any liability for the injuries, to your property.
Do you need a life insurance? Without any dependants, you might think life insurance is not needed. If you have a spouse dependent on you, you need to have a life insurance, because the social security monthly payments might not be enough, when one of the spouses dies. When one dies, the amount of income coming from the government would reduce and the spending would increase. Thus, you should be prepared to protect your spouse through a higher coverage. Some life insurance provides long term care benefits and this is one of the main reasons as to why most of the senior citizens opt for new coverage. Having a new coverage at the later stages of life would come with a high premium baggage. This is one of the most costly insurance of all when it comes to senior citizens, but is really important if you have someone depending on you.
Insurances to avoid
What are the insurances which should be avoided after retirement? With limited funds to spend, it is better to avoid unnecessary insurances, to reduce the burden. Life insurance for kids, flight insurance, pet insurance, private mortgage insurance and car rental insurances are mostly unnecessary, after retirement.
Examine the insurance terms and conditions and make sure that the insurance would truly protect you and whether you get decent return on investment. If the answer is no, it is better to avoid those insurances after retirement.